This section describes the alternatives available for the provision of LGU support for PPP projects, particularly multiple user projects. The section is divided into three parts, respectively:
1. Why the LGU should consider providing credit enhancement support to privately-owned infrastructure facilities;
2. Policy for government support; and
3. Types of support that can be provided by the LGU.
By providing support, the LGU makes the PPP project less risky and thereby improves its financial viability. For risks outside the control of the project, a public sector guarantee underwriting that risk shifts it from the private partner back to government. The provision of government support thus forms a part of the overall risk management of the project, although the provision of government support is influenced by other factors such as whether the support can fit into the budget.